Source: IRS, www.irs.gov .
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TOPICS
Tax
IRS Allows Statistical Sampling for M&E Costs
here is very good news for CPAs whose clients face the often burdensome administrative costs of claiming allowable expense deductions for meals and entertainment (M&E)—the IRS now will permit the use of statistical sampling to account for such expenses. OVERVIEW Although most M&E expenses are subject to a 50% limit,
Professional Issues
PCPS—the AICPA Alliance for CPA Firms—and the Texas Society of Certified Public Accountants launched the 2004 Management of an Accounting Practice Survey. The Association for Accounting Administration and firms from 43 states are participating in the online survey. Information is available at http://map.pcps.org . The survey, which provides local and
Debt Allocation and LLCs
Debt Allocation and LLCs T he number of limited liability companies (LLCs) in the United States is increasing dramatically. Most choose to be taxed as partnerships and follow the normal partnership rules. However, some of those regulations must be adjusted as a result of the owners’ limited liability. Recently the
Impact of Self-Employment Loss on Earned Income
Inconsistencies in the law often prove troublesome for taxpayers and the IRS. Various tax code sections define “earned income” differently, some reference it differently and still others refer to it but don’t define it. IRC section 63 is a case in point. Generally, section 63 says taxpayers are entitled to
Free at Last
Source: Tax Foundation, www.taxfoundation.org .
Some Industries Pay Less Than Others
Source: Comparison of the Reported Tax Liabilities of Foreign- and U.S.-Controlled Corporations, 1996-2000, Government Accounting Office, www.gao.gov , 2004.
Auditing
Subject to approval by the Securities and Exchange Commission, the Public Company Accounting Oversight Board adopted PCAOB Auditing Standard no. 3, Audit Documentation; an amendment to a related interim auditing standard on documentation; and two rules ( www.pcaobus.org/pcaob_news_2004-06-09.asp ). One rule sets forth the terminology the PCAOB will use to
Smart Stops on the Web
Business And Industry Sites Plan for Change www.boozallen.com CPAs, CEOs and CFOs can visit this business strategy consulting company’s Web site and download the “Ten Guiding Principles of Change Management” for strategies and tips on managing change within an organization. Users also can read free articles such as “Reducing Overhead
A Former AICPA President Is Dead at 88
Ralph E. Kent of Durham, North Carolina, died on June 26, 2004. He served as president—the title then held by the Institute’s highest ranking volunteer—for the 1968–69 committee year and then as a life member of the AICPA council until the time of his death. A distinguished member of the
International
PCPS—the AICPA Alliance for CPA Firms—and the Texas Society of Certified Public Accountants launched the 2004 Management of an Accounting Practice Survey. The Association for Accounting Administration and firms from 43 states are participating in the online survey. Information is available at http://map.pcps.org . The survey, which provides local and
Public Service Rewarded
As part of its ongoing efforts to honor CPAs for their volunteer work, the AICPA has established the Public Service Award for Firms to acknowledge humanitarian contributions at the local, state and national levels. The award complements its longstanding counterpart for individual CPAs (see “ Robertson Cited for Volunteer Work,”
Are You Spamming Your Clients?
EXECUTIVE SUMMARY WITH THE ADVENT OF FEDERAL LAWS controlling spam e-mail, CPAs must exercise caution in their communications with clients and prospects. In so doing they can improve the look and effectiveness of their e-mail marketing programs. THE CAN-SPAM ACT OF 2003 INCLUDES civil and criminal penalties for predatory and
Shareholder Guarantee to S Corporation Creditors Doesn’t Increase Basis.
According to IRC section 1366(d) the aggregate amount of losses and deductions an S corporation shareholder may take into account for any taxable year may not exceed the sum of the adjusted basis of the shareholder’s stock in the S corporation and the shareholder’s adjusted basis in any amount the
Securities
The SEC published for comment proposed regulation B, which would implement provisions of the Gramm-Leach-Bliley Act of 1999 (GLBA) that delineate the securities activities in which banks may engage without registering as brokers under the Securities Exchange Act of 1934 ( www.sec.gov/news/press/ ). GLBA introduced 11 functional exceptions to replace
More Tax Pros Go High-Tech
Source: IRS, www.irs.gov .
Nonelecting Innocent Spouse Rules
In 1984 Congress expanded the protection from joint and several liability it provided to innocent spouses. Recently, an appeals court affirmed a Tax Court decision that there is a glitch in the law. John and Judith Maier were divorced in 1995. At the time of their divorce they owed both
E-Mail and the Law
EXECUTIVE SUMMARY SPAM IS A BUSINESS PROBLEM companies now must address because of domestic and international laws. Companies need to adopt Internet marketing privacy policies to comply with various privacy and spam regulations. CPAs can use the AICPA/CICA Privacy Framework to help organizations accomplish these goals. THE AICPA/CICA PRIVACY FRAMEWORK
IRA Rollovers After 60 Days
ince the dawn of individual retirement accounts (IRAs), taxpayers could roll over distributions tax-free into another IRA within 60 days of the date the distribution was received. However, the IRS had consistently argued that it could not extend (waive) the 60-day period, except in statutorily prescribed circumstances. Thus, even when
Government Accounting
The Governmental Accounting Standards Board (GASB) published Statement no. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans ( www.gasb.org/news ), which addresses financial reporting by plan trustees or administrators regarding their stewardship of trusts or other funds established to provide postemployment health care and other nonpension benefits—commonly
Features
FROM THIS MONTH'S ISSUE
4 ways solo practitioners can stand out
Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.
From The Tax Adviser
April 30, 2026
Current developments in taxation of individuals: Part 2
April 30, 2026
